Moscow: According to a G-7 official quoted by Bloomberg on Friday, the Group of Seven has agreed to the EU's proposal to cap the price of Russian diesel exports at between $100 and $110 per barrel.

The G7 nations want the cap to be set slightly higher, citing concerns that a lower ceiling could send fuel prices soaring and cause disruptions in the EU. The European Commission has reportedly proposed a cap level of $100 per barrel.

Both the EU and the G7 are expecting a deal aimed at sales to third countries to be reached by the beginning of February. Negotiations on the matter are still ongoing.

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According to data from ICE Futures Europe, the price of headline diesel futures, which exclude Russian supply, was about $125 per barrel on Friday.

The EU, G7 countries, and Australia announced a ban on Russian seaborne oil and a $60 per barrel price cap on December 5. On February 5, the EU imposes a ban on the import of refined petroleum products from the country that is subject to sanctions.

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Vladimir Putin, the president of Russia, issued a decree in December outlining retaliatory measures in response to the price cap on Russian oil exports. It forbids Russia from supplying oil and petroleum products to nations whose contracts set a price cap.

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Additionally, deliveries are not permitted if the contracts expressly or implicitly refer to the cap, according to the decree, which takes effect on February 1, 2023 and is in force until July 1, 2023. The government will decide later on what day the prohibition on supplying petroleum products will go into effect.